Question

Wood Maker Ltd. incurred the following selected transactions during the month of April:

Apr.	2		Paid monthly rent, $800.
	3		Earned $1,000 on account for floor refinishing.
	5		Earned service revenue for floor sanding and polishing and received $1,250 cash.
	6		Purchased additional refinishing equipment for $3,000. The company paid cash of $500 and the balance was due on account in 20 days.
	12		Collected amount owed by customer for April 3 transaction.
	15		Declared and paid $150 of dividends to shareholders.
	16		Purchased sandpaper for $500 on account. (Hint: Use the Supplies account.)
	19		Paid $200 to repair equipment.
	20		Sold picnic tables to an RV park for $2,000 on account. (Hint: Use the Sales account for sale of products.)
	25		Paid balance owing for purchase of refinishing equipment on April 6.
	27		Received $500 from a customer in advance to provide refinishing services to be delivered next month.
	30		Paid salaries to employees of $1,800.

For each transaction, indicate (1) the basic type of account debited or credited (asset, liability, shareholders’ equity); (2) the specific account debited or credited; and (3) whether the specific account is increased or decreased to record this transaction. Use the following format.

Answer 1

	Account Debited			Account Credited
Date	Basic Type of Account	Specific Account	Amount	Basic Type of Account	Specific Account	Amount
Apr. 2	Stockholder's Equity	Rent Expense	Increase	Asset	Cash	Decrease
Apr. 3	Asset	Accounts Receivable	Increase	Stockholder's Equity	Service Revenue	Increase
Apr. 5	Asset	Cash	Increase	Stockholder's Equity	Service Revenue	Increase
Apr. 6	Asset	Equipment	Increase	Asset	Cash	Decrease
				Liabilities	Accounts Payable	Increase
Apr. 12	Asset	Cash	Increase	Asset	Accounts Receivable	Decrease
Apr. 15	Stockholder's Equity	Dividends	Increase	Asset	Cash	Decrease
Apr. 16	Asset	Supplies	Increase	Liabilities	Accounts Payable	Increase
Apr. 19	Stockholder's Equity	Repair Expense	Increase	Asset	Cash	Decrease
Apr. 20	Asset	Accounts Receivable	Increase	Stockholder's Equity	Sales Revenue	Increase
Apr. 25	Liabilities	Accounts Payable	Decrease	Asset	Cash	Decrease
Apr. 27	Asset	Accounts Receivable	Increase	Liabilities	Unearned Revenue	Increase
Apr. 30	Stockholder's Equity	Salaries Expense	Increase	Asset	Cash	Decrease